RPI direction + NS&I

Where is inflation going? Thoughts on this please. I know if we knew the answers to this kind of question, we'd be very rich, but ideas welcome.
Late next month I have a maturing NS&I inflation linked bond. It was RPI +1%. I can renew for 3 or 5 years at RPI+0.05% tax free.
These were a great investment during the crash, but became terrible when inflation dipped towards zero.
I expect more inflation if labour win. ~3% for 5 years is available from some of the smaller banks, but taxable unless I use my ISA allowance. I already intend to make my max SIPP contribution from other funds.
As these RPI+ x funds are no longer available from NS&I for new investors, it may be worth keeping some.
I'm thinking maybe keep half for 3 years, and half into an ISA UK bond fund.
Tough choices. TIA.
fred
Reply to
fred
One thing to think about is what happens if inflation becomes negative. The NSI bonds use 0 or RPI whichever is larger (IIRC).
The fact that you can no longer buy them, but only maintain the ones you have, suggests that they are a good thing.

Robert
Reply to
RobertL
wrote:
Thanks. Pretty much my thoughts too - but ~3% fixed for 5 years is available. NS&I were quick to drop from RPI+1 down to RPI, but don't seem to want to increase now inflation is near zero.
Reply to
fred
I guess that tells us that the government expects inflation to rise significantly above 3% during the next 5 years.
Robert
Reply to
RobertL

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